Myers Industries(MYE) - 2025 Q1 - Quarterly Results

Financial Performance - First quarter 2025 net sales were $206.75 million, a slight decrease of 0.2% compared to$ 207.10 million in Q1 2024[4] - Gross profit increased by 7.5% to $69.08 million, resulting in a gross margin of 33.4%, up from 31.0% in the prior year[4] - Operating income rose significantly by 53.0% to$ 16.65 million, while net income increased by 94.3% to $6.81 million, leading to a net income per diluted share of$ 0.18, doubling from $0.09 in Q1 2024[4] - Adjusted EBITDA for Q1 2025 was$ 28,573,000, compared to $25,140,000 in Q1 2024, reflecting a 9.7% year-over-year growth[23] - Adjusted operating income for Q1 2025 was$ 18,678,000, up from $16,643,000 in Q1 2024, indicating a 12.2% increase[23] - Adjusted net income for Q1 2025 was$ 8,356,000, compared to $7,923,000 in Q1 2024, reflecting a 5.4% increase[24] - The diluted earnings per share for Q1 2025 was$ 0.18, up from $0.09 in Q1 2024, marking a 100% increase[26] - The company reported a net income of$ 6,805,000 for Q1 2025, compared to $3,503,000 in Q1 2024, which is a 94.5% increase[26] Segment Performance - The Material Handling segment reported net sales of$ 157.7 million, a 3.6% increase year-over-year, with operating income margin improving by 280 basis points to 17.4%[5] - The Distribution segment experienced a decline in net sales to $49.2 million, down 10.3% from the previous year, resulting in an operating income margin of -2.4%[6] Liquidity and Cash Flow - Total liquidity at the end of the quarter was$ 267.0 million, with $231.7 million available under the revolving credit facility and cash on hand of$ 35.3 million[9] - Cash flows from operating activities for Q1 2025 were $10,131,000, down from$ 20,270,000 in Q1 2024[20] - Ending cash balance increased to $35,302,000 in Q1 2025 from$ 32,730,000 in Q1 2024, reflecting a growth of 7.7%[20] - The company reported a net cash provided by financing activities of $988,000 in Q1 2025, a significant decrease from$ 336,874,000 in Q1 2024[20] Expenses and Liabilities - Selling, general and administrative expenses for Q1 2025 were $44,755,000, slightly lower than$ 47,113,000 in Q1 2024, indicating a decrease of 5.7%[26] - Total current liabilities rose to $162,580,000 in Q1 2025, compared to$ 147,112,000 in Q4 2024, marking an increase of 10.5%[19] - The company incurred restructuring expenses of $2,028,000 in Q1 2025, compared to$ 241,000 in Q1 2024, indicating a significant rise in restructuring costs[24] - Interest expense for Q1 2025 was $7,386,000, down from$ 6,079,000 in Q1 2024, showing an increase of 21.5%[26] Capital Expenditures and Assets - Capital expenditures for Q1 2025 were $8,083,000, compared to$ 5,707,000 in Q1 2024, representing an increase of 41.8%[20] - Total assets increased to $883,842,000 as of March 31, 2025, up from$ 860,815,000 at the end of 2024, representing a 2.4% increase[19] Future Outlook - The 2025 outlook for the Industrial end market is moderate growth, while the Infrastructure segment is expected to see strong growth[11] - More than 90% of revenue from the Material Handling segment is anticipated to be manufactured in the U.S. in 2025, providing supply chain advantages[3] - The company aims to foster a culture of accountability and continuous improvement through its "Focused Transformation" program[3] Taxation - The effective income tax rate for 2025 was 26%, compared to 25% in 2024, reflecting a slight increase[24]